god_of_money,Its just an average quote I got from a couple of REAs.Richard,(Sorry but I am going to ask some fairly newbie questions)Yes it is a P& I loan, I'm fixed for 3 years on it. I am abit slow on the terminology, but what do you mean by capital reduction? And yes the redrawn funds will only be used for investment purposes only.…[Read more]

G’day Richard, Thank you for your reply. Here are some further details for my current IP situation and the serviceability I can provide to the new loan.  IP1: Purchase Price: $260kOriginal Loan amount: $208k Valuation: $280kLoan Balance: $193kEquity (80%): 32k Rental income: $360/wk ($18000 for 50wks)Rental expense: $22,426.20 per yr[Read more]